Which of the following is not a component of the formula used to distribute profit? * After all other allocations, the remainder divided according to the profit and loss sharing ratio Salary allowances to the managing partners Interest on the average capital investment Interest on notes to partners

Which of the following is not a component of the formula used to distribute profit? * After all other allocations, the remainder divided according to the profit and loss sharing ratio Salary allowances to the managing partners Interest on the average capital investment Interest on notes to partners

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 4BCRQ

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Question

Which of the following is not a component
of the formula used to distribute profit? *
After all other allocations, the remainder
divided according to the profit and loss
sharing ratio
Salary allowances to the managing
partners
Interest on the average capital investment
Interest on notes to partners
A corporation whose stock can be
purchased by anyone and is traded in stock
markets is known as a(n) *
Government-owned corporation
Close corporation
Open corporation
O Not-for-profit corporation

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